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- Title
Return Enhancing, Cash-rich or simply Empire-Building? An Empirical Investigation of Corporate Real Estate Holdings.
- Authors
Julan Du; Ka Yui Leung, Charles; Chu, Derek
- Abstract
No, we find no evidence for a return-enhancing role for corporate real estate holdings, which is consistent with the previous literature. Instead, our study based on a sample of U.S. listed corporations suggests that corporate real estate holdings are a form of managerial "empire building". Corporations with weaker corporate governance and a lower degree of financial constraint tend to have higher real estate holdings, whereas higher real estate holdings are associated with lower returns to shareholders. The impact of corporate governance on corporate real estate holdings seems to be stronger in manufacturing-related industries. Implications and future research directions are discussed.
- Subjects
REAL estate business; CORPORATE real estate investment; CORPORATE governance; MANUFACTURING industries; STOCKHOLDERS
- Publication
International Real Estate Review, 2014, Vol 17, Issue 3, p301
- ISSN
1029-6131
- Publication type
Article
- DOI
10.53383/100188